Barczyk, DanielKredler, Matthias2022-06-282022-06-282014-11-01Barczyk, D., & Kredler, M. (2014). Altruistically motivated transfers under uncertainty. Quantitative Economics, 5, pp. 705–7491759-7323https://hdl.handle.net/10016/35319How do families behave dynamically? We provide a framework for studying economic problems in which family behavior is essential. Our key innovation is the inclusion of imperfectly altruistic agents in an otherwise standard consumption-savings problem with exogenous income risk. This gives rise to altruistic transfers and strategic behavior in the consumption&-savings decision. We study the Markov-perfect equilibrium that arises from the limit of equilibria in a sequence of finite games. The equilibrium's transfer patterns are empirically plausible. Furthermore, agents overconsume relative to the social optimum. In contrast to two-period models, both the richer and the poorer players overconsume long before transfers actually occur. The poorer agent also faces incentives to engage in excessive risk-taking because losses from a gamble are absorbed by both while gains are enjoyed alone.eng© John Wiley & Sons, Inc.Atribución-NoComercial 3.0 EspañaAltruismInter vivos transfersConsumption-savings decisionDifferential gamesC73D1D64E21research articleEconomíahttps://doi.org/10.3982/QE353open access7053749Quantitative Economics5AR/0000015949